Published: Thursday, April 4, 2013 at 5:55 p.m.

Last Modified: Thursday, April 4, 2013 at 7:29 p.m.

A Wilbur-by-the-Sea man accused in a multimillion dollar mortgage fraud scheme was released from jail Thursday, the same day another man accused in the same ploy was arrested.

James Sotolongo, 47, was released from the Seminole County jail about 11 a.m. Thursday after supporters guaranteed a $250,000 signature bond a day earlier during a hearing in federal court in Orlando.

Christopher Mencis of Longwood was arrested Thursday and released on a $25,000 signature bond. Mencis, 51, said in a phone interview Thursday that he also is a victim. Mencis denied involvement in the scheme and blamed Sotolongo.

Mencis said the buyers who came in to see him as a mortgage broker were coached and he was "fooled that these were legitimate qualified people that were coming in" to borrow money for home purchases.

"I was a stupe," Mencis said. "I was a victim. I was bamboozled."

Sotolongo and Mencis, whose state mortgage broker license has expired, are part of what the FBI has dubbed the "Sotolongo Mortgage Fraud Scheme" which also includes Sotolongo's pregnant live-in girlfriend, 34-year-old Ramara Garrett, a real estate broker. Another person charged in the scheme is Winter Park title agent Stephanie Musselwhite.

Each was charged with one count of conspiracy to defraud the United States, punishable by up to 20 years in prison.

Sotolongo, Garrett and Musselwhite were arrested last Friday and neither those suspects nor their attorneys have commented. Like Mencis, Garrett and Musselwhite were each granted a $25,000 signature bond, or recognizance bond, and released at their first appearance hearing last Friday. Sotolongo and Garrett surrendered their passports Thursday, court documents show.

Sotolongo's bond was guaranteed by his mother and stepfather, Gina and Evaristo Alvarez, and by his sister and brother-in-law Georgina and Carlos Ruiz. His bond was also guaranteed by Marilyn Garrett, the mother of Sotolongo's girlfriend. If Sotolongo does not appear in court, the $250,000 would be levied as a fine.

The four were the focus of a three-year investigation by the FBI's Fraud Task Force. FBI Agent Robert Robichaud wrote in a complaint that Sotolongo, Garrett, Musselwhite and Mencis as well as other co-conspirators who have not been charged were part of the "Sotolongo Mortgage Fraud Ring." For seven years between 2005 and 2012 the group made false statements to financial institutions for the purpose of influencing the banks on mortgage loan approvals, according to the complaint.

The group launched a scheme to defraud the banks in order to obtain loans for upscale properties, some valued in the millions of dollars, the complaint states.

The FBI on Jan. 31 raided the bus bench advertising business started by Garrett, hauling away several boxes worth of documents and files from Waverly Media LLC at a small warehouse at 4188 Dairy Court in Port Orange.

Sotolongo has a criminal history that includes robbery, fraud, money laundering and an attempt to possess and distribute cocaine, officials said.

For the most recent charges, FBI agents have said they believe Sotolongo's group collected about $50 million through the scheme. Agents have also said they have no idea what happened to the money.

On Thursday morning, the website for Garrett's defunct real estate firm, Waverly Property Group, still showed her accolades, testimonials, graphics, photos and a variety of properties for sale and rent. It even boasted that she sold the most expensive property in Volusia County in the company's first year, 2007.

But by the afternoon the site was taken down. Instead of a picture of Garrett and information about real estate, people who click on the link get a white background with this message in small black type: "This website has been removed. If you are the owner of this website please contact Alternate Image Accounts Receivable."

<p>A Wilbur-by-the-Sea man accused in a multimillion dollar mortgage fraud scheme was released from jail Thursday, the same day another man accused in the same ploy was arrested. </p><p>James Sotolongo, 47, was released from the Seminole County jail about 11 a.m. Thursday after supporters guaranteed a $250,000 signature bond a day earlier during a hearing in federal court in Orlando. </p><p>Christopher Mencis of Longwood was arrested Thursday and released on a $25,000 signature bond. Mencis, 51, said in a phone interview Thursday that he also is a victim. Mencis denied involvement in the scheme and blamed Sotolongo. </p><p>Mencis said the buyers who came in to see him as a mortgage broker were coached and he was "fooled that these were legitimate qualified people that were coming in" to borrow money for home purchases. </p><p>"I was a stupe," Mencis said. "I was a victim. I was bamboozled." </p><p>Sotolongo and Mencis, whose state mortgage broker license has expired, are part of what the FBI has dubbed the "Sotolongo Mortgage Fraud Scheme" which also includes Sotolongo's pregnant live-in girlfriend, 34-year-old Ramara Garrett, a real estate broker. Another person charged in the scheme is Winter Park title agent Stephanie Musselwhite. </p><p>Each was charged with one count of conspiracy to defraud the United States, punishable by up to 20 years in prison. </p><p>Sotolongo, Garrett and Musselwhite were arrested last Friday and neither those suspects nor their attorneys have commented. Like Mencis, Garrett and Musselwhite were each granted a $25,000 signature bond, or recognizance bond, and released at their first appearance hearing last Friday. Sotolongo and Garrett surrendered their passports Thursday, court documents show. </p><p>Sotolongo's bond was guaranteed by his mother and stepfather, Gina and Evaristo Alvarez, and by his sister and brother-in-law Georgina and Carlos Ruiz. His bond was also guaranteed by Marilyn Garrett, the mother of Sotolongo's girlfriend. If Sotolongo does not appear in court, the $250,000 would be levied as a fine. </p><p>The four were the focus of a three-year investigation by the FBI's Fraud Task Force. FBI Agent Robert Robichaud wrote in a complaint that Sotolongo, Garrett, Musselwhite and Mencis as well as other co-conspirators who have not been charged were part of the "Sotolongo Mortgage Fraud Ring." For seven years between 2005 and 2012 the group made false statements to financial institutions for the purpose of influencing the banks on mortgage loan approvals, according to the complaint. </p><p>The group launched a scheme to defraud the banks in order to obtain loans for upscale properties, some valued in the millions of dollars, the complaint states. </p><p>The FBI on Jan. 31 raided the bus bench advertising business started by Garrett, hauling away several boxes worth of documents and files from Waverly Media LLC at a small warehouse at 4188 Dairy Court in Port Orange. </p><p>Sotolongo has a criminal history that includes robbery, fraud, money laundering and an attempt to possess and distribute cocaine, officials said. </p><p>For the most recent charges, FBI agents have said they believe Sotolongo's group collected about $50 million through the scheme. Agents have also said they have no idea what happened to the money. </p><p>On Thursday morning, the website for Garrett's defunct real estate firm, Waverly Property Group, still showed her accolades, testimonials, graphics, photos and a variety of properties for sale and rent. It even boasted that she sold the most expensive property in Volusia County in the company's first year, 2007. </p><p>But by the afternoon the site was taken down. Instead of a picture of Garrett and information about real estate, people who click on the link get a white background with this message in small black type: "This website has been removed. If you are the owner of this website please contact Alternate Image Accounts Receivable."</p>